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New Housing Pipeline

Quarter 4, 2017 Report

The residential development pipeline remains strong. The fourth quarter saw a strengthening in approvals after a slight cooling during the previous three months. The number of units approved during the quarter was 1% up on the third quarter of 2017 and 9% higher than during the same period of 2016. The year-on-year rise was driven by a 7% increase in the number of private housing units approved together with a 27% rise in social housing units approved. Overall the number of residential units approved during 2017 was 21% higher than during the previous year.Glenigan recorded the approval of around 98,100 residential units during the fourth quarter of 2017. At 86,300 units, housing schemes of ten or more units accounted for 88% of approved units; the remainder being on smaller new build projects including self-build schemes, homes included within non-residential projects, and the conversion of non-residential properties.At 3,514, the number of private sector housing projects (schemes of 3 or more units) securing approval during the fourth quarter was 16% up on July to September 2017 and 24% higher than during the corresponding period of the previous year.

Almost 84,800 units were granted planning permission on private sector projects during the fourth quarter. Whilst this was a 3% decline against the preceding quarter, the number of units was still 7% ahead of a year earlier.At 201, the number of social housing projects (of three or more units) increased sharply from the low level of project approvals seen during the second and third quarters. The number of project approvals was 21% up on the preceding three months, but was 7% down of the strong performance seen in the fourth quarter of 2016. There was also a sharp rebound in the number of social housing units approved, which at 10,857 was 59% up on the third quarter and 27% higher than a year ago.

Most parts of the country saw a rise in units approved during the fourth quarter compared to the same quarter of 2016.The strongest growth was in London, Scotland and the East and West Midlands where approvals were up 37%, 34%, 28% and 18% respectively on the fourth quarter of 2016. Unit approvals in the North East and Wales bucked the national trend and were down 37% and 17% respectively against strong approvals a year earlier. Approvals were also slightly weaker in the East of England and the South East.

Overall unit approvals in Great Britain during the 2017 were 21% up on a year earlier, with the North East the only part of the country to see a small decline in unit approvals. The strongest annual growth has been in the East Midlands and Scotland, with approvals rising 46% in both areas. Strong growth was also seen in Yorkshire & the Humber, the West Midlands, East of England and the South East, with increases of 22%, 27%, 29% and 24% respectively.

Table 1: Number of residential units approved

Overall unit approvals in Great Britain during the first nine months of 2017 were 18% up on a year earlier, with firm growth down the east coast of England, in the South East, the Midlands and in Scotland and Wales. The South West was the onlypart of the country to see a decline during the first nine months, with the number of units approved 7% down on a year earlier.